HOW TO BUILD BUSINESS CREDIT IN SIX MONTHS
More than half of businesses will fail in five years or less. In addition, 82% of business failures are due to issues with cash flow. Most business owners agree that loans are not easily available. More than half of small business owners worry about capital throughout the week.
How to Succeed with Getting Money
To succeed with getting the most business credit at the best terms, set up your business where it’s fundable by meeting business lender approval criteria before applying for loans. Get business credit for your EIN that’s not linked to your SSN to become more lendable and easily access other capital you need.
Improve Your Fundability
Have you ever applied for a business credit card and gotten an automated instant approval? Lenders and credit issuers have an unpublished set of standards in their computer system that you must meet in order to get approved for business credit. How fundable your business is will determine if you get automated approvals, or denied. Some fundability factors include: The type of business entity you have; the type of phone number you use: business or cell phone; if your business phone number is listed in certain directories; the type of business address your business has; the type of business licensing your business has; the congruence of your records; the types of business lending references you have; whether your bank account is set up; the way your website and email are set up; and numbers you have, such as your EIN, DUNS, and BIN.
Even if you are fundable, most business loans applications get denied because of potential fraud concerns, not because you don’t qualify. Business Lenders combat fraud by matching your company and application details against other data they have from places such as: LexisNexis, Dun & Bradstreet, Experian, The Small Business Financial Exchange, Equifax, and ChexSystems.
LexisNexis Reports include: Every home you’ve ever owned including value and sale prices; building materials for your home; HOA info such as beds, baths, and roofing; AC Units; deeds and mortgages; title companies; interest rates; loan amounts, terms, loan types; every phone number and email you’ve ever had; all licenses, firearms, mortgages, and violations; traffic tickets, felonies, misdemeanors, sex offender records; name variations; marriage and divorce records; every vehicle owned including VIN; every insurance policy you’ve ever had; every business you’ve been associated with; family info including children; loans and leases; aircraft and boat owner records; public records including bankruptcies, judgements, lawsuits; education information including degrees, schools, dates attended and graduated; military records; online marketing records, and short-term credit offer request records
Build Credit for Your EIN
When your business applies for money your business credit is being used to determine if you’ll get approved and how much you may get approved for. Get approved regardless of consumer credit quality. No personal guarantee is required, and there are no consumer credit inquiries or reporting. Credit limits 10-100 times consumer credit. Get credit quickly because scores are based on payment history. This establishes your credibility for lenders, suppliers, and credit issuers. You can be issued a failing score for your business, even if you have no credit reporting, because you appear unestablished or possibly on the verge of filing bankruptcy. Even one account reporting can change a failing score to a great score to become more lendable. As you continue to grow your credit, the business reporting agencies recommend you for more and more money, helping you get higher approvals on business credit. Any business can qualify for business credit, including startups, non-profits, owners outside of the U.S, and people who own multiple businesses. Get approved even when you can’t get any type of loan or credit line, There are no cash flow requirements, no collateral is required, and there are no consumer credit requirements.
How to Build Initial Business Credit
In order to get initial business credit, credit must report to business CRAs and credit issuers must approve with no current credit. Personal guarantee and non-personal guarantee are both available.
Use Credit Line Hybrid to Build EIN Credit
Get $150,000 credit line hybrid to build EIN Credit. There are 0% rates and no DOC. You are able to take cash out, and startups and credit partners are welcome. There are no collateral or cash flow requirements. Multiple cards can be approved, typically five to eight. Business and standard cards are available and funding is free roll-in.
Use Vendors to Build EIN Credit
Use vendors with no personal guarantee, no terms such as Net 30, and no credit check. Some trade vendors do use minimum purchase, and you must use vendors who report Fundability is important to approval of a vendor. The best reporting agencies: Uline, Crown Office Supplies, Laughlin & Associates, and Supply Works.
Steps to Build Credit for Your EIN
In order to build credit for your EIN, apply for the program that best fits with the number of accounts you are reporting. With five or more accounts reporting, apply for Retail Credit; with eight or more accounts reporting, apply for Fleet Credit Tier; and with fourteen or more accounts reporting and a $10,000 high-limit, get Credit Cash Tier and auto financing. Post- COVID-19, underwriting relationships have become very important. Don’t authorize personal guarantee or credit check, use the credit you get, pay bills early, get loans and credit lines that report, and watch employee numbers when filing annual reports.
How to get Money to Grow Your Business
As an entrepreneur, you should be able to get the money you need, when you need it. However, not knowing approval standards, not having business credit, and not being able to access all funding options in one place is holding you back. Credit Suite’s Business Finance Suit helps you do all three to get the most of your money at the best terms.